UK retail sales volumes continue to grow at brisk pace in August

UK retail sales volumes continued to grow at a brisk pace in August with further strength envisioned in September, according to the results of a widely followed survey.

The Confederation of British Industry´s distributive trades total sales index jumped to a reading of +24% in August after a print of +21% in the month before, reflecting a pace of growth which was considerably above average for that time of year.

The consensus estimate had been for a reading of +18%.

“Household spending seems to have remained firm going into the second half of this year, so the outlook for the retail sector looks upbeat.

“However, the renewed fall in average selling prices illustrates the intense challenges facing some retailers – particularly grocers – where strong price competition to capture consumer value is still prevalent,” Rain Newton-Smith, CBI Director of Economics, said in a statement.

Clothing stores put in an especially strong performance, CBI said, while grocers rang up better sales following two months of stagnation.

Companies increased their payrolls for the first time in 2015 given expectations for a continued improvement in the business situation over the coming quarter.

Expectations for recruitement were at their best since May 2000.